Tokyo core inflation rate jumps in September, bolsters case for more BOJ hikes
The core index excluding fresh food rose 2.7% from a year earlier, while a broader measure climbed 3.0%, strengthening the case for more BOJ hikes.
- On Friday, Tokyo's core consumer price index rose 2.7% in September, accelerating from a 1.8% gain in August and exceeding a median market forecast for a 2.4% gain.
- Service-Sector inflation hit 2.3% in September, accelerating from 1.4% the previous month as firms passed on rising labor costs from a tight job market.
- An index stripping away fresh food and fuel effects, closely watched by the Bank of Japan as a gauge of trend inflation, rose 3.0% in September after a 2.0% gain in August.
- The BOJ, which raised interest rates to a 31-year high last month, will weigh this leading indicator when issuing fresh quarterly inflation forecasts at its next policy meeting on October 29-30.
- Masato Koike, senior economist at Sompo Institute Plus, said, "Core inflation will continue to accelerate as a trend due to rising energy costs from the Middle East conflict.
16 Articles
16 Articles
Core inflation in the Japanese capital rose in September at the fastest pace in 10 months.
Inflation in Tokyo rose sharply in September as the effects of several temporary government measures wore off, supporting the Bank of Japan's (BOJ) stance on further interest rate hikes.
Tokyo: Core inflation in Japan's capital accelerated in September at the fastest pace in 10 months, highlighting rising price pressures that are strengthening the grounds for further interest rate hikes. The data is seen as a leading indicator of the national trend and will be one of the factors in the Bank of Japan's next policy meeting on October 29-30 when it issues a new quarterly inflation forecast. Newly released data shows that Tokyo's co…
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